With modern technology influencing and transforming the way banking is done and playing a key role in uplift of the country’s image through its development in all sectors, cloud computing is drawing a lot of attention due to its huge scope to facilitate various processes writes Akash Tomer of Elets News Network (ENN).
In recent years, cloud computing has emerged as one of the fastest-growing technologies. Business applications are the largest markets for cloud services spending.
It is well-known a major shift is taking place in banking sector as well. It’s a shift many banks have been pretty hush-hush about, and every bank is rapidly testing and moving to the cloud.
It provides full scalability, reliability, high performance and relatively low cost feasible solution as compared to dedicated infrastructures. The rapid emergence of cloud computing is transforming the way financial institutions think about how they consume their IT resources.
Also, cloud computing has the ability to make enterpriselevel banking systems and associated technologies available in the cloud on a pay-per-use basis, now there is no barriers associated with this technology as anyone, anywhere can have access to banking systems without the cost and other.
Cloud computing offers more flexible business models to the financial institutions which lowers operational costs. However, it is essential to select the cloud service model that best matches the core business requirements.
The banks are presently using cloud technology for its most of the operations, few of them are as follows:
Card and mobile payment processing through Visa, MasterCard and trusted third parties
Most of the banks process their credit and debit cards, and ATM transactions through Visa, MasterCard, or a trusted third-party processor with a cooperative agreement. These card and mobile payment processors use cloud technology to operate.
Marketing and customer relationship management
Cloud providers such as OMI provide help to the banks in their market research and analytics that enable banks and financial institutions to segment their markets to increase their customer bases and product penetration. Salesforce is also a leading cloud provider for sales and customer relationship management (CRM).
Large financial institutions maintain their own core banking systems, but this isn’t always possible for small to mediumsize banks and credit unions. Well-established cloud services providers in this space are Fiserv and Jack Henry & Associates. Both companies offer a choice of cloudbased core banking systems.
Human Resources and talent management
As in-house Human Resources (HR) systems age, more financial services companies are considering cloud-based HR that offers not only core HR software like payroll and benefits, but also emerging HR software like talent management. Popular choices for the cloud in this area include Oracle HCM (Human Capital Management) and SAP/SuccessFactors.